The Dividend Cafe Wednesday - July 16, 2025
Jul 16, 2025
The podcast dives into positive market momentum, noting gains in the DOW, S&P, and Nasdaq alongside a drop in the 10-year yield. It highlights a surprisingly low Producer Price Index for June, hinting at improved inflation prospects. The discussion also covers rising industrial production and insights from the Fed's latest report. Listener questions tackle the stability of New York City bonds amid tax concerns and the idea of a consumption tax replacing income tax. The outlook for upcoming economic data is also previewed.
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Producer Price Index Highlights
- The Producer Price Index (PPI) for June was unchanged, cooler than expected, aligning with Fed's inflation targets of around 2%.
- This indicates potential easing in wholesale prices that typically lead consumer prices lower.
Positive Economic Activity Indicators
- Industrial production rose by 0.3% in June, exceeding zero growth expectations.
- The Fed's Beige Book also reported positive upticks in economic activity across districts.
Sector Gains Boost Market Rally
- Financial and pharma sectors saw positive moves, boosting major indexes like the Dow.
- Alternative asset managers and private credit funds contributed to the broad market rally.